Rents on let property

iswim2011's picture
Sun, 10/31/2010 - 10:26
by iswim2011

I personally think that rents on some propertys that have been bought to let out are just to costly and people often struggle to get a months deposit together and then a months rent in advacnce as well. You almost need a mortage to get it all set up and some places do a credit check.

I did here on the news that there are those who need help with paying the rent and that the govenment are going to cap the level of money they will pay out for people who need the help in renting a property.

Surely some of these rents do not need to be as high as they are. I do take in to account that a landlord or lady has to make some money back as that was the idea prior to buying a place to rent out.

Has anyone else noticed that some of these rents are a bit on the high side. I think if they came down a little bit then there would be a few more people who could rent would be able to pay the fees.

Would love to here feed back on this more so after hering something similar on the news.

Marcus

fredjones62's picture
Tue, 11/02/2010 - 20:11
by fredjones62

I was talking to some people in the local watering hole you know and they got on this topic of that some of the buy to let properties were just to costly to rent and that you needed a mortage to pay the deposit, months rent and credit checks etc. It is just crazy.

I can see that someone is want to make a return on there investment but yes but do the prices need to be tooooooooooo high. You need to be in a high paid job like a banker but if you can afford a high rent like that then you can afford to buy a nice place.

I do think they could come down in price a bit if nothing else. May be the landlord could give you 1 month free after 12 months of renting as a good will guesture that is if the place is kept spotless, well looked after and no call out to engineers for silly things that could have been sorted by yourself.

Fred

Fred

road runner's picture
Sat, 11/06/2010 - 10:46
by road runner

I totally agree that the buy to let rents are quite high at times.

I really like the idea that if a really good tenant dose not have problems that need an engineer calling out and loads of jobs to do plus they look after the place and pay the rent on time and get 1 months free rent as a good will guesture.

That would may be make people more likely to look after there places and they could spend that money else where and then that would help the economy.

Rodney Smile

Road Runner ( meep, meep )

dogwalker009's picture
Thu, 01/27/2011 - 18:07
by dogwalker009

Smile I like the idea of get a months free rent if someone looks after a rented property but what landlord are you going to find who will give someone a months rent for free. They all know how to charge the rent and have good holidays.

I also agree that the rents are often far to high for some places but they seem to get away with it.

View answers to similar questions

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  • Is it possible to buy a property to let with a non-buy to let mortgage?

    I already have a mortgage on my primary residence. I now want to purchase a buy to let property. The mortgage rates on buy to let are much higher than normal ones. Would it be possible to buy the buy to let without disclosing that it's going to be rented out?
    Yes . . your present loan is what it is . . by simple stating that you are buying this home to live in and plan on renting your present home out, you will get the preferential loan . . You do have the ability to change your mind afterward and not move into the new home. And if you did move into that house, you would not be mandated to get a new loan against your existing residence, regardless.

    however i'm sure there is a governmental tax structure in there that makes the taxes on a rental property higher . . .so you will get hit with a higher tax structure somewhere as you probably cannot show both homes as primary residences

    So . . as you can see here . . you're getting some different answers . . I think we can all agree that what you are doing is not legal . . but the concern is . . whether you can get away with it or not, how to get away with it, . . and what are the consequences. . . .
    My answers are from what I have routinely dealt with in the US . . not the UK

    You might post this under Taxes . . as well as law and ethics

    Best of Luck to you

  • At what point does a buy-to-let property become a commercial hotel?

    At whichpoint does a residential buy-to-let property becomes a commercial hotel. For example, say I purchased a 6 bedroom house in the countryside, initially the property may be used as a buy-to-let property, but how would the point be defined between that and a hotel? Essentially they are both examples of rented accommodation, just based on different time periods. This is the only idea I could come up with, any help would be very useful.
    There are regulations for hotels vs. BTL. A hotel is a business with short stays and other details. You will have to check with the regulators in your area for what a hotel needs before it can open its doors for business.

    Closer to what you are describing is a home with multiple occupants. New regulations have come into effect in much of the UK. As you used the term BTL i am assuming you are interested in the UK.

    Check the link below. Note that the HMO regulations are new and many people are concerned about how the rules are applied in different areas. A number of landlords who have been operating buildings impacted are selling or otherwise converting the building so the HMO regulations will not apply. In some areas this is removing a number of rental units from the market.

  • Can you let a property under mortgage?

    I need to be flexible as to where I can work, but I would like to invest in a property so that money I earn isn't wasted on rent. So what I need to know is if I have to fully own a property to let it out to someone else, whilst I'm renting a property close to my work.
    You can let a property that is mortgaged. However, if you have a normal residential mortgage your agreement will require you to be living in the property. If you want to let it you need the lender's permission. And usually they will require you to convert the mortgage to a "buy to let" mortgage. Obviously, if you are buying with the intention to let then you will get a buy to let mortgage in the first place.

    Having a buy to let mortgage is not a matter if legality. It is purely a contractual requirement of the lender. The reason they do this is that if you struggle to make repayments a landlord is far more likely to default that someone who is living in their mortgaged home. So buy to let mortgages are more risky for the lender, and the normal way a lender offsets higher risk is higher interest rates.

    So you will find that the buy to let mortgage you need will have a higher rate than you would be offered if you were buying the house to live there. The criteria to get the mortgage are also slightly different to what you may be used to with a residential mortgage. Even when people were getting 95% or 100% mortgages on their own homes, lenders expected at least 25% deposit from buy to let landlords, so you will need to find at least that amount. And the amount you can borrow will be based on the expected rental income and not your personal salary.

  • why cant i find a property to let in east riding of yorkshire that except dss tennents ?

    i want to go and live in the country where i can travel to and from hull to take my husband on hospital appointments we are on dss but there doesnt seem to be any properties.skirlaugh surrounding villages but no luck.its not our fault we are on dss my husband had an heart attack and had to give work up he and myself have always worked but it now seems has though no one wants to help us when it comes to private rented properties maybe you know some one who could help us lead that bit better life in the country we would look after the property im a garedner and love decorating so the property would get the best ,i only want serious answers please ive searched all the net and found nothing, please please please HELP US
    Try Myton or somwhere in East hull
    Or you could try moving to a differant city.

    Maybe somewhere in west yorks.

    Hope all goes well.

  • UK Tax System - How do you estimate capital gains tax on let property (Owned since 1995, let for final 4yrs)?

    The property was purchased for £65000 in 1995 and is now worth £200,000. I lived in it from Sept 1995 - Sept 2002 (7 years) and have rented for 4 years. I am not sure whether I need to move back in for 6 months in helping to reduce any Capital Gains liability. I do not really understand how to calculate liability. Thanks to anyone who can offer any guidance. Is now the time to sell before the bill gets bigger
    You are only liable for capital gains tax on the increase in value of the property since September 2002 till the date of any future sale, less your annual exemptions. The District Valuer will therefore need to determine the value as at September 2002.

    I wouldn't advise you to sell at all. Whilst property prices are set to rise, and whilst the CGT bill will get bigger as the value of the property appreciates; and you will keep most of that gain anyway, so don't be pennywise Pound foolish.

    My advise is that if you are happy with the rental income coming in from the property and you are also happy with where you are living at present, then don't worry about CGT, as this will only arise on sale and will come out of the proceeds of any future sale, by which time you might have already decided to move back into it the property on a permanent basis, in which case CGT will not arise.

    You must however be careful when remortgaging, so that you always have enough equity left in the property to pay any CGT, should it arise.

    I really hope I havn't confused you.

  • CRB check and Property Letting/Renting......UK?

    I have convictions from when I was a teenager and during my early 20's. The last time I was convicted was nearly 14 years ago. Will this appear on a CRB check?

    I'm considering renting a new home and a number of letting/estate agents have stated that not only will I have to pass a credit check, I must also pass a CRB check.

    I'm really worried about this, as during my early 20's I was claiming housing benefit and my rent was paid directly to my private landlord. I moved home and to a different area, I made a new claim for housing benefit at my new address, believing it would automatically cancel the claim at my old address, it did not and as a result my old landlord received housing benefit for a total of 50 weeks.

    I was charged with 18 counts of Deception and 32 counts were taken into consideration. The landlord was never charged and the rent was refunded and I also had to pay back £4000.

    I also have convictions of theft and handling stolen goods, committed nearly 19 yrs ago, when I was a teenager.

    So, what will a Landlord/Property/Estate agency be able to see from a CRB check?

    What will they make of it, if it states I have 18 convictions for Deception?

    Other than my Conviction for Deception in 1994, since 1991 I have never been arrested and I have never committed any criminal offence. I've been a responsible and law abiding adult for the last 20 yrs, with a family of my own now and also in full time employment.

    The Deception offence was a misunderstand all carried out in my own name, however, it was deemed an offence and I was convicted and punished by the courts.

    Can anyone offer any advice?
    I have approached a number of letting agents and all request the CRB check as well as a credit check, combined with an admin fee, they charge a total £130, which should I fail either check, its not refunded?

    Due to my past misdemeanor, I will fail the CRB check and I guess lose my money?

    Technically a CRB check is only required for employment, that's if the chosen field of employment is required by law to request a CRB check, i.e. working with children, vulnerable adults etc.

    However, there is nothing to stop any business or company from joining the CRB network and carrying out checks, although it is technically unlawful, apparently no laws are being broken?

    As this following article reveals, even
    bricklayers and gardeners face 'illegal' criminal record checks when applying for work.

    http://www.dailymail.co.uk/news/article-1042824/Now-bricklayers-gardeners-face-illegal-criminal-record-checks-applying-work.html
    CRB checks in the UK are usually only done for people working with children or vulnerable adults. Why on earth Letting Agents would require one I do not know. Yes all your convictions will show up on an Enhanced check but due to time lapse they may not on an ordinary crb check.
    If I were you I would choose an agent who does not do this, fair enough to have a credit check but a crb is going to far. They can only do it with your permission and will charge you for it, anything from £38 upwards.

  • Letting a property out to a council/housing association?

    Hi, I own a property in west Thamesmead, London (in the borough of Greenwich). I usually let the property - a two bed maisonette to private tenants through an estate agent. I have been told that there is a way of the council renting the property from you on a long term basis, and putting tenants in it.... does anyone know anything about this? how do you go about it - how much you would get per month in regards to a prive letting etc etc.... any info would be helpful!
    The specifics vary from borough to borough so you'd need to contact Greenwich council, but in general, this is a really bad idea.

    The only advantage to this is that you can pretty much guarantee constant rent and don't have to worry about empty periods.

    The downsides are that you will be paid far less than the market rent, and that you have no say in who lives there. Whilst I'm not going go so far as to say that those who live in council housing are worse-behaved than those who don't, as a landlord, I would want to retain the authority to be able to vet someone before they move in, and to evict someone who is a crap tenant. You'd be giving up this authority.

  • Looking for 2/3 bed property to let Swansea East area approx £500p/m DSS Accepted ?

    Either 2 Double bedrooms or 3 bedroom prefer a 3bed...Llansamlet / winchwen / lancoed / Trallwn close to Cwm/Cwm Glas/Cefn Hengoed School.

    Any help would be great....been at current private rented property for 3yrs now on DSS no problems whatsoever, just a bit small now as children getting older.....
    Try posting an ad on OzAdz. Might get a better response there. It has a property section.

  • question about income tax on property I let out?

    I own a property which I have been renting out since April last year in the uk. I know I have to pay Income Tax on the property but since they moved in April 2008 does this mean I don't have to pay tax on it until the next Financial Year in 2010?
    You need to tell HMRC that you are letting a property and they will issue a return after 6 April. You will declare your income for the y/e 5/4/09 on this form and the tax will be payable by 31 Jan 2010.